Employment Contracts Explained

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At a minimum, an employment contract,  in a rudimentary sense can exist from day one of an employee starting work.

This is because an employment contract can be implied, verbal or indeed written.

Regardless of whether a written contract is issued, all employers are legally obligated to supply a written statement of the terms and conditions of employment within two months of an employee starting work.

It is imperative for all employers to abide by this minimum standard otherwise they leave themselves exposed should a dispute occur with their employee.

This written statement does not, however, constitute an employment contract, which as mentioned can be conveyed in numerous ways and numerous places, and is equally binding whether verbal, implied , or written.

Written Employment Contracts Make Sense

But for employers who want to minimise their risks it makes practical business sense to err on the side of caution and always provide a written employment contract.

Especially, as there may be aspects of an employee’s role unique to that position, which can’t be covered through the statement of terms and conditions.

This principal statement focuses solely on statutory requirements such as the name of the employer and employee party to the agreement, the job title and description of work, the date of employment starting, the level and intervals of pay, the hours of work, the entitlement to holidays, and the address of the place of work.

Clearly, this minimum requirement may not be enough to cover many pertinent aspects of an employee’s position.

Risks

Yet without a written employment contract, an employer is exposed should a dispute arise over these pertinent aspects.

But there’s no need to cover implied aspects in employment contracts, such as an employee not committing theft of property. Nor is there need to commit to paper what has become company custom such as enhanced redundancy payments, or aspects already covered by law such as a right to a minimum wage.

Instead, it is more particular aspects such as a restrictive clause whereby a manager cannot find employment with a competitor within an agreed term after leaving work.

It is entirely down to an employer to map out what they need from an employment contract, as long as they stay within statutory requirements.

But, it is always best practice to back up these ‘wants’ in writing, preferably re-inforcing them also through a staff handbook.

That way an employer considerably reduces their own risk from costly pay-outs after losing disputes, and an employee will also have a clear reference guide to all aspects of their employment.

Employment Law Services Come Of Age

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Revolutions weren’t supposed to be like this. To fundamentally change the way so many people communicate and do business without them even being aware of the tectonic shifts beneath their feet will befuddle historians of the future.

But make no mistake, we have been amidst a digital revolution that is fundamentally reworking many aspects of our lives. And, employment services will be affected like so many other businesses and services.

When an employer required employment services to operate robust and protective HR measures, they would always come at a cost – HR departments or for the unfortunate smaller start-ups and SME’s payments to specialist advisors and lawyers to ensure their employments services were up to scratch.

And, it wasn’t like there was a great deal of choice. Statutory requirements govern vital measures such as well-drafted employment contracts otherwise you could be facing costly tribunal or court costs. But this traditional way of doing businesses like so many others is being surpassed by cheaper, easier online employment services.

And the promise being delivered upon is employers being able to take advantage of employment services from innovative companies such as Papertrail’s which deliver flexible, bespoke employment services at a fraction of the former costs.

Such new, cheaper more efficinet entrants into the market may be bad news for traditional providers but it’s all good news for SME’s. Any employer can now take advantage of employment contract templates, staff handbooks and a whole host of other key employment services that will offer protection from Employment Law infringements.

And, they don’t only get the right documentation as part of this employment service, but advice on numerous HR functions such as recruitment, interviewing and selection of candidates.

They will be able to receive a correctly drafted employment contract in line with statutory requirements, and, critically, kept up-to-date with any pertinent legislative change. The new employee can peruse the full polices and procedures of the company via easy-to-create staff handbooks, which demonstrate the company’s compliance with all aspects of the law.

And, the flexibility of such online employment services, caters for any specifics which need adding into an employee’s terms and conditions. But Papertrail provide new competitive edge in this market by introducing the collation of digital signatures- that all-important audit trail which helps employers generate, track and capture compliance in all formal employment matters from maternity letters to promotions.

Again, an employment service which ramps up the protection afforded to employers should they face disputes.

As with any revolution, there’s always going to be winners and losers. With technologically-driven employment services like Papertrail’s, employers in start-ups and SME’s can count themselves among the winners, with added protection in the workplace from an easy-to-use, cost-effective and efficient employment service.

What To Look For In Employment Contract Templates

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If you’re an employer and have decided to use employment contract templates, then that’s already a positive start.

You’re already on the road to reducing fees to specialist advisory and employment lawyers – and what can be better than reducing unnecessary costs.

But to remain on the road to full compliance with employment law, it pays to make the right choice when selecting employment contract templates.

Their purpose should be to make life easier for an employer, and this involves from the start guidelines being simple and blissfully clear of over-complicated ‘legalese’. They are designed for the layman and must be fully understood by the layman.

Secondly, they should be flexible. A one size fits all template patently wouldn’t work as the needs of employers are different. For example, an employer of drivers will doubtlessly require more stringent disciplinary measures regarding misuse of company vehicles or consumption of alcohol in work time.

Thirdly, they must be updated. There’s no point in an employer becoming compliant with employment law through their employment contract template, then failing to remain compliant. Protection comes from meeting statutory requirements. Statutory requirements often change, and these changes need to be reflected in all employment documentation. This necessitates choosing employment contract templates from companies who have the expertise to monitor employment law changes and modify documentation accordingly.

Fourthly, there should be consideration of what other services are offered by the company supplying an employment contract template. Templates are merely one key aspect helping with employee relations. Other services can include the ability to offer a bespoke staff handbook which will serve as a handy reference guide for employees as well as detailing an employer’s utmost compliance with the law. Alternatively, some companies may act a virtual HR resource offering advice and support with a whole range of employee relations.

Finally, it make sense for an employer to make sure their chosen employment contract template supplier really is covering off all current statutory requirements. These include the following as a minimum, and may be supplemented with other terms relating to a specific organisation:

  • name of employer and employee
  • date employment (and the period of continuous employment) began
  • level of remuneration and intervals at which it is to be paid hours of work
  • employee’s holiday entitlement
  • entitlement to sick leave, including any entitlement to sick pay
  • details of any pensions and pension schemes
  • entitlement of employer and employee to notice of termination
  • job title or a brief job description
  • clarification about whether the employment contract is temporary place of work
  • details of any relevant collective agreements which affect the terms and conditions of the employee’s employment

Making The Most Of A Contract of Employment Template

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A Contract of Employment Template is a cost-effective solution for many businesses.

It can help new businesses and smaller businesses, who can’t afford to lavish resource on lawyers and specialist employment advisors, to become compliant with Employment Law. But not every contract of employment template is created equal.

Some, for example, may be free downloads which promise compliance but could potentially end up costing a company a considerable amount. How is this so? Consider the following.

A free download provides a contract of employment template which saves costs and hopefully will be simple to follow and easy to compile. But what if a year or two later, a dispute occurs in the workplace and when it reaches court or tribunals, it transpires that a key statutory requirement has been modified or introduced since downloading the template.

How free then would this contract of employment template have been? Alternatively,the free template may necessitate more and more services which aren’t so free.

Ultimately, for peace of mind over employee relations, it pays to invest a little with expert companies such as Papertrail. Their contract for employment templates will be modified in line with statutory requirements due to their team of expert employment lawyers monitoring changes and realising them through updated documentation for their clients.

As any employer knows who has been through a tribunal, prevention is always the best cure, and it makes sense when it comes to contract of employment templates to choose one which affords real protection and that means keeping abreast of legislative change.

Added to this salient point, paid providers generally provide a whole host of other services which can considerably reduce costs in tandem with boosting protection.

Clearly, choosing a contract of employment template requires the question of how free is free? And, the need to find out if the templates get updated, to find out what other services are offered in addition to these templates, and to make sure you are trusting key employment documentation to specialists who know what they are doing.

Making these right choices about contract of employment templates ensures protection for employers at reduced costs than would otherwise be available in the ‘offline’ world.

How Employment Contract Templates Help Employers

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Employment Contract Templates are business labour-savers and potentially business life-savers.

Ok, that may be overstating the case. But for some small and medium enterprises finding themselves on the wrong side of an employment tribunal ruling because of a poorly-drafted employment contract, or one that failed to keep abreast of legislative change, then an employment contract template could have been key to maintaining the lifeblood of their business – profitability.

The beauty of taking advantage of an employment contract template from a company such as Papertrail is that it does all the work for an employer – affording protection against legal infringements and keeping in-line with legislative change.

A UK employment contract sounds fairly straightforward being an agreement between two parties with one agreeing to work and another paying them for that work. But by law (section 1 of the Employment Rights Act, 1996), as a minimum, key terms and conditions of that employment need to be put in writing and presented to an employer within two months of their start date.

Failure to do this, and to meet statutory requirements leaves employers exposed, facing potentially costly disputes. Having proof of the conditions of someone’s employment is clearly vital should any disputes occur.

Papertrail provides employers with an employment contract template which is simple, meets all statutory demands and can be tailored to full terms and conditions that match the individual circumstances of employment.

Such an employment contract template can reused time and again safe in the knowledge that they afford complete alignment with statutory requirements.

Flexible Employment Contract Templates

Employers will also find that employment contract templates from Papertrail provide full flexibility for the insertion of additional terms and conditions, for example, a restrictive covenant for key people once their employment has ended. Such additional clauses can sometimes prove controversial but when well drafted and executed, free from ambiguity, prove an adequate protection against complaint.

Whatever the type of business carried out by an employer, they will find that an employment contract template isn’t a job-lot, one size fits-all exercise but a document that recognises and meets the unique demands of their business.

Properly drafted and executed employment contracts are clearly an essential bedrock for employer protection. The arrival of companies like Papertrail now makes best practice available to all, helping keep employers on the right side of the law and out of costly tribunal or court cases.

Simple Steps Can Save Employers Time And Money

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The phrase once bitten twice shy is a fitting phrase for any employer who’s been on the wrong end of an employment tribunal decision.

And, if you’re a small or medium enterprise rather than a large corporation with funds to cover such risks, then the damages can prove severely debilitating. It’s not simply the expense, which is bad enough. It’s the untold man hours lost focusing on such a distraction.

And then, there’s the deleterious effect on staff morale and damage to personal or company reputation. As always, prevention is the best cure and there are many surprisingly simple steps which can boost protection against infringements.

It helps to have all employment contracts clearly documented and covering all statutory requirements. An employer’s complete compliance with the law can be advertised through their staff handbook, covering in detail every aspect of the employment relationship.

This provides a clear reference point for the employer and employees, who have to acknowledge their receipt or awareness of both employment contract and staff handbook.

Both should form the bulwark of any employer’s necessary documentation, along with awareness and implementation of the right procedures for handling any potential litigious pitfall from maternity leave to disciplinary procedures.

It can sometimes seem for employers that the workplace is a potential minefield for disputes, but clear paths can be carved out helping employers to avoid costly disputes.

There was a time where robust preventative measures came at a price from the services of specialist employment or HR advisers or lawyers billing by the hour. But, this is simply no longer the case. There are online providers such as Papertrail whose HR services can be licensed at a fraction of the costs of ad hoc legal services.

This helps with the provision of the right documentation, tailored to each employer’s unique circumstances. Further, they are updated in line with any legislative change so an employer’s polices continually reflect any updates, keeping then the right side of employment law.

While this accounts for the right documentation, Papertrail is innovative in helping with procedure. By allowing of digital signatures to be logged for all employer and employee communications, employers have a record of right and proper responses should any dispute escalate to tribunals.

Rather than being regretful after suffering the devastating impact of a lost tribunal, employers are now perfectly placed to have all the necessary preventative measures in place

Solution Blazes A Trail for Employers

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A well-drafted Employment Contract meets statutory legal requirements and serves specific the purposes of the employer.

And, they need to be updated whenever employment law changes so employers are protected against accidental infringements.

For many small and medium enterprises pre-prepared employment documentation tailored to these specific requirements from online providers prove a cheaper, more convenient option.

All such employment contract templates contain guidelines for their issue and correct completion. By law, all employees are entitled to the written terms and conditions of their employment, and these must be issued within two months of their employment.

Employment contract templates are extremely simple to compete for all employees, and come as part of an online resource including notes on interviewing and recruiting applicants, ensuring the provision of a virtual HR department.

Every eventuality comes already covered with full flexibility for employers, regardless of whether prospective employees are part-time, full-time or recruited for fixed period.

This includes how to alter employment contracts and numerous other resources such as acceptance letters. For added protection for employers and reference for employees, employment contracts are backed up by employee handbooks, covering the whole framework of employment relations.

The sophistication of online employment solutions such as Papertrail’s proves a welcome and attractive labour-saver for many employers. And, most importantly affords them maximum compliance with employment law, even when employment law is amended.

Their simplicity about area’s which can be complex enhances their attractiveness as a pre-solved solution for employers.

Added to this, the ability to track all relevant communications with a unique digital signature system, and employers have at their disposal a powerful and robust solution to all their employment law needs.

Papertrail is a progressive development for all employers who can license their software and services at a fraction of the cost of providing such a solution in-house.

Employee Handbooks Help Everybody

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There is a minimum and a maximum employers can do to cover themselves against potential legal costs arising from employee disputes.

The minimum would be meeting statutory demands and little else. The maximum would be a HR laboratory of perfection, with every pertinent aspect of the employment relationship documented and distributed; expert, trained staff implementing policies, and legal or HR advisers able to peruse every pronouncement.

The maximum’s clearly a pipe dream. The minimum is all too frequent. Any business needs to weight up the potential costs of providing robust protection against legal – or perceived legal infringements – in the workplace.

And, for many small and medium enterprises, employee handbooks can be deemed a cost too far. But, this is a mistake. Employee handbooks are a convenient method of demonstrating compliance with all legal aspects of the employment relationship from health and safety regulations to employment law.

The exhaustive guidance mapped in an employee handbook covers off many eventualities. The insistence on new employees signing for their employee handbook ensures no-one can claim ignorance of company guidance, policy and procedures.

If somebody burns their hand at a workstation having perched a coffee on their computer, then it’s a violation of company guidelines, which they have assented to, as it states clearly not to drink hot drinks at the workstation.

This is just one of myriad examples of how liability over many matters can be made safe. And, the belief that employee handbooks are too difficult to compile, or keep updated annually in line with the latest legislation, is becoming obsolete. Companies such as Papertrail are leveraging the efficiencies of digital HR provision to pass on their savings to customers. Employee handbooks that are comprehensive and tailored to individual companies are now within the reach of all, and of benefit to all – employer and employee. And, this creates an opportunity for employers to move away from the statutory minimum towards fuller and more effective protection, minimising their risk exposure to costly lawsuits or tribunal pay-outs.

Where There’s People, There’s a Need For Grievance Procedures

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Work forms a central part of most people’s lives, unsurprising given the amount of time we spend in the workplace.

And, any workplace acts as a microcosm of society at large. There are secure individuals, insecure individuals, and the majority of individuals who bounce between the two.

Along with the differing and flawed personalities all people possess, work impacts on most people’s sense of well-being, self-esteem or accomplishment.

It’s no wonder, then, that this volatile melting pot will sometimes tip over into feelings of being wrongly singled out, or overlooked, or any number of grievances valid or otherwise.

And being able to handle grievances in the workplace by having the right policies and procedures in place is vital to maintaining as much harmony as possible and minimising disruptive or costly tribunals and court cases. The standard definition for a workplace grievance is a complaint from an employee regarding an action that will be taken, or has been taken against that employee.

Such complaints without procedure can degenerate into finger pointing, which is why cool heads are called for acting along reasonable guidelines.

Any employer should always be aiming for an informal resolution whenever possible while taking the right steps should this prove impossible.

This makes sense practically and potentially, financially, as awards will be greater against employers if they haven’t abided by correct grievance procedures.

Similarly, any employee failing to participate in grievance procedures can find their lack of co-operation penalised in the compensation they receive. Statutory grievance procedures are covered off in Part Two Schedule 2 of the Employment Act 2002.

It goes without saying that a company’s grievance procedures should be communicated to all employers and reflect statutory requirements. An employee must first document their grievance and present it to their employer.

This is a prelude to a meeting whereby the employer or their representative and the employee will discuss the details of the alleged grievance after allowing for a reasonable period of time for the employer to digest the details.

At this meeting, the employer can inform the employee of their decision, along with a right to appeal should the employee be dissatisfied by the outcome.

The meeting could also be adjourned if further details are needed for a decision. The employee must then inform their employer of their wish to appeal.

This triggers another meeting leading to a final, binding decision by the employer. Sometimes, the employee may have already left the company which necessitate modified procedures.

Regardless of any reluctance by the ex-employee to play ball, procedure should still be followed as this can count against an employer should the matter go to tribunal.

In theory, the steps seem simple, but sadly, there are multiple grey area’s and strongly contested differences of opinion. How long is a reasonable time for consideration? And, grievance hearings and disciplinary matters can invariably end up entwined.

The huge advantage of a company such as Papertrail in the online sphere is their ability to replicate the paper trail of all such meetings for added employer protection.

Protection is always greatest with the elaboration in writing of set grievance procedures and following these procedures to the letter when a grievance comes to light.

As long as there’s people working, there will always be grievances, but proper procedure can take the heat – and potential costs – out of many such incidences.

Prevention Best Cure For Tribunal Claims

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The sensible approach for employers at small and medium enterprises when it comes to employment rights is a vigilant approach.

There’s no point reacting and tightening up procedures after being hit with costs from a tribunal. Instead, prevention of breaches of employment rights is best practice.

This is easier than it sounds, as it only takes a wrong word from a manager failing to recognise a grievance, an ill-timed remark in a redundancy consultation, or procedures out of sync with legislative change for an employer to find themselves in trouble.

But auditing your business to see where you are exposed can reap benefits. All staff have employment contracts but these need to be up-to-date relevant to their position.

And, the staff handbook also needs to be relevant and clear about what is and isn’t contractually binding, and that these strictures don’t cut across any statutory rights.

If there’s any ongoing redundancies, guidelines for those dealing with redundancy need to be clear about the rights of staff for consultation on their dismissal and objective procedures for selection. Any decisions which influence employees’ pay or promotions also need to follow correct procedure.

When assessing exposure, it can seem like the framework of employment relations is a minefield, with the slightest of stumbles from the correct path causing damage to the business.

Added to this, many SME’s are tied up with running their business and cannot afford in time or cost a legal adviser running a daily rule over procedure and practice. But, thankfully, there are now operators attuned to dealing with such issues in novel ways which minimise costs and exposure for businesses.

Papertrail is such a provider allowing an employer to avail themselves of all the necessary employment documentation which is updated in line with legislation. And, unlike other seemingly similar providers, they have recognised the importance of audit trails – the paper trail -, of making sure dealings with staff are fully documented to reduce litigation risk.

This has been accomplished by logging meetings and outcomes digitally, so there’s an accurate record of correct procedures being followed. The cost in time and money of employment disputes should be avoided by having a preventative policy in place, rather than a reactive policy when problems come to light.

Partnerships with companies such as Papertrail can help companies reduce their exposure , keep in line with legislative change and ensure correct procedures are being followed in the workplace. This can only save time and money, and therefore, can only be sensible business practice for any SME.